ExxonMobil profits up despite lower oil and gas output

ExxonMobil Wednesday cut its forecast for oil and gas production after a number of major projects hit snags in the ramp-up phase

US oil giant ExxonMobil Thursday reported higher second-quarter profits despite pumping less oil and gas than it did a year ago.

Exxon, the biggest US oil company and the second-largest US company in terms of market capitalization after Apple, said earnings came in at $8.8 billion, up 28 percent from the year-ago level.

Production of oil and gas declined 5.7 percent, but profitability in the exploration and production segment rose 25 percent to $7.9 billion. Exxon said "higher realizations" for its output added $580 million.

Lower oil and gas volumes is often seen as a red flag in the oil business. But Exxon has emphasized that it will not sacrifice profitability for higher output, meaning it will not produce oilfields unless they are highly profitable.